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Task 5: The firm is considering the purchase of a new device that costs 6,000. Assume a required rate of return of 12% and the
Task 5: The firm is considering the purchase of a new device that costs 6,000. Assume a required rate of return of 12% and the following cash flow schedule: Year 1 3,000 Year 2 2,000 Year 3 2,000 Calculate the profitability index of the investment project ?. and Would the acceptance of the project result in added value for the firm? Explain.
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